Senate okays Sh302bn for county chiefs

Council of Governors Chairman Peter Munya addresses delegates during the official opening of the Third Annual Governors' Conference at Meru National Polytechnic on April 20 2016. Senators have unanimously approved the Division of Revenue Bill, 2016 that will see governors receive more than Sh300 billion in the next financial year. PHOTO | PHOEBE OKALL | NATION MEDIA GROUP

What you need to know:

  • It was brought to the House after the National Assembly passed it and is now headed to State House for assent.
  • Following its passage, the two Houses will now embark on the County Allocation of Revenue Bill, 2016 that distributes funds among the counties.

Governors are now set to receive more than Sh302 billion in the next financial year after Senate passed the Division of Revenue Bill, 2016, which will spur developmental activities in counties.

On Thursday, senators, without amendments, unanimously approved the Bill that divides revenue between national and county governments each budget year.

The new Bill will be applied in the 2016/17 financial year that begins in July.

It was brought to the House after the National Assembly passed it and is now headed to State House for assent.

The Bill is normally prepared by the Treasury but MPs and senators have the leeway to make changes.

As per the Bill, the governors will get conditional allocation of Sh4 billion for maternal health care, Sh4.5 billion for leasing medical equipment, Sh4 billion for Level Five hospitals, and Sh200 million for emergency medical services.

Following its passage, the two Houses will now embark on the County Allocation of Revenue Bill, 2016 that distributes funds among the counties.

According to this Bill, all the counties will get Sh280 billion in shareable revenue and a further conditional allocation of Sh22 billion.

The shareable revenue has gone up from Sh259 billion in the current financial year.

This is the first time the two Houses have passed it without having to go through mediation.